The analysts at Counterpoint Research released their global smartphone shipments report for Q1 2020. As expected the market plummeted 13% YoY due to COVIID-19 global pandemic. However, brands like Relalme and Xiaomi showed an increase of 157% and 7% YoY growth rates respectively. In fact, they are the only company to be less affected. Also, the market share of 5G phones rose to 8% compared to 1% last year at the same time.
For the first time ever since Q1 2014, the global smartphone shipments dropped below 300 million units in a quarter. China as the primary smartphone market of the world was severely affected by the pandemic, which originated from the region.
Smartphone shipments declined by 27% YoY in China making the region account for 22% overall global market share from 26% last year. This also affected the supply chain, which can lead OEMs to look for countries like India and Vietnam in the future.Apple only saw a 5% YoY decline but its iPhone revenues dropped by 7% YoY.
As far as recovery is concerned, analysts predict mid-range smartphones to be the biggest winner of the pandemic. Sales of entry-level handsets are expected to go down due to the current economic situation, especially in developing nations. But high-end devices will start selling once again after certain normalcy.
However, mid-range devices will continue to thrive. On top of it, OEMs are expected to launch 5G-enabled sub $300 smartphones, which will further increase the market share of 5G as well as mid-range handsets.
Further, the most affected are the OEMs whose primary channel of business is offline. Also, the market share of the top 10 brands has increased from 80% in Q1 2019 to 83%. This suggests the brands that rank 11 and above like HMD Global are yet to see worst quarters.